Government Employees Insurance Company (GEICO) and its subsidiaries have filed a lawsuit against a New York medical supply company and its owner, alleging a scheme to defraud the insurer of more than $620,000 through false no-fault insurance claims.
Filed Aug. 27, 2025, in the U.S. District Court for the Eastern District of New York, the complaint names Advanced Supplies of NY Corp., its owner Tatyana Linnik, and unnamed John Doe defendants.
GEICO accuses the defendants of orchestrating a fraudulent billing scheme involving durable medical equipment (DME) such as cervical collars and lumbar supports.
According to the complaint, the defendants submitted claims for DME that was either medically unnecessary or never provided. GEICO alleges these claims were backed by collusive relationships with healthcare providers who issued prescriptions in exchange for kickbacks.
The insurer says it has already paid more than $620,000 on these claims and is seeking restitution. It is also asking the court to declare that it is not liable for an additional $200,000 in pending claims submitted by the company.
The lawsuit states that prescriptions were issued under a predetermined protocol, not based on legitimate medical evaluations. Additionally, GEICO alleges the defendants inflated reimbursement rates by misrepresenting the type and quantity of equipment supposedly provided.
Advanced Supplies is described in the complaint as a billing front for the fraudulent operation. Linnik is alleged to have overseen the scheme, while the John Doe defendants are described as individuals connected to referring providers or medical clinics treating large numbers of no-fault insurance patients.
GEICO argues the conduct violates various state and federal laws, including New York’s no-fault insurance regulations and federal statutes prohibiting unlawful financial relationships between providers and practitioners. The insurer also invokes the federal Racketeer Influenced and Corrupt Organizations (RICO) Act, claiming the damages meet the legal threshold for a racketeering claim.
The plaintiffs seek monetary damages, declaratory relief, and a court order preventing further exploitation of the no-fault insurance system.
The suit is being heard under Case ID 1:25-cv-04765.
Source: 125cv04765_GEICO_v_Advanced_Supplies_of_NY_Corp_Complaint_Eastern_District_New_York.pdf